The deal, announced by the two companies at the Mobile
World Congress in Barcelona, demonstrates Yahoo's momentum in
mobile services worldwide in spite of the uncertainties raised
by Microsoft's <MSFT.O> takeover bid.

T-Mobile had been Yahoo rival Google's breakthrough mobile
partner.

Beyond the nearly 90 million phone customers that Yahoo
stands to reach through T-Mobile, the deal, signed last
Wednesday, shows Yahoo's mobile moves have not been hobbled by
the possibility that Microsoft <MSFT.O> could become its
parent.

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Marco Boerries, the senior vice president in charge of
Yahoo's mobile phone push, said the exclusive deal brings the
number of subscribers covered by partnerships Yahoo has struck
with mobile carriers over the past year to more than half a
billion potential phone customers.

"We are now passing 600 million," Boerries said.

During 2008, Yahoo plans to focus on joint marketing
efforts with its carrier partners to convert these potential
customers into regular users of Yahoo Internet services on
their phones.

Financial terms were not disclosed.

The agreement takes effect at the end of March, when the
previous T-Mobile deal with Google expires, T-Mobile and Yahoo
said in a statement.